Everything in the Pakistani auto market is on the rise. Car prices, bike prices, and tyre prices have gone up this year. As per a recent media report, the prices of imported tyres have increased by a massive 25% between January and December 2021.
Three factors contributed to the exponential surge in imported tyre prices: rupee devaluation, imposition of Regulatory Duty (RD), and an increase in import trade price.
Bridgestone or Good Year Tyres
The price of Bridgestone or Good Year tyres (155/65/13, 175/70/13, and 185/65/14) have gone up to Rs. 15,000, Rs. 10,500, and Rs. 13,150 respectively. Back in January, the same imported tyres cost Rs. 9,000, Rs. 8,100, and Rs. 10,700.
The current prices of Chinese tyres (175/70/13 and 185/65/14) are Rs. 7,000 and Rs. 8,500 against their old rates of Rs. 5,500 and Rs. 6,500 in January.
Dunlop tyres (175/70/13 and 185/65/14) now cost Rs. 8,950 and Rs. 10,750 against their old prices of Rs. 7,350 and Rs. 9,275 in January.
As per the media report, prices of second-hand tyres have also increased. A set of four used Bridgestone or Good Year tyres (155/65/13) in good condition (without any puncture spots) cost around Rs. 15,000. In January, the same set came for Rs. 8,000 to Rs. 9,000.
Where the prices of imported tyres have increased by 25%, the prices of locally manufactured tyres have gone up by 8 to 11% in a year.
Pakistan Tyre Importers and Dealers Association (PTIDA) chairman Ashraf Dharani complained that the government believes tyres are luxury items, whereas all over the world, tyres fall in the category of essential items of daily use.
He said that a further increase in taxes on imported tyres would harm the market. More legal trade will shift to tyre smuggling, which is already a big challenge.